is made, then a reasonable additional premium is payable.

This section is simple to understand. The commonest form is where either a different interest, vessel or other vital alteration in the general or specific character of the insurance is known to be a possibility to be considered at the time the insurance is effected, or where contracts of affreightment authorise deviations within the meaning of the Marine Insurance Act, and the assured requires protecting in such event. For example, insurances are often effected "per Steamers, 100 A1 or equivalent, or held covered."

What is a reasonable premium or additional premium, is always a question of fact, that is, governed by the ruling market rate for the hazard.

It is an implied condition in connection with an agreement of insurance to hold any alteration in the risk covered at an agreed additional premium, that notice should be given to underwriters of the alteration within a reasonable time (Thames & Mersey Marine Insurance Company, Ltd., v. H. T. van Laun & Company, 1905).

Double Insurance.

Section 32.-(1) Where two or more policies are effected by or on behalf of the assured on the same adventure and interest or any part thereof, and the sums insured exceed the indemnity allowed by this Act, the assured is said to be over-insured by double insurance.

(2) Where the assured is over-insured by double insurance

(a) The assured, unless the policy otherwise provides, may claim payment from the insurers in such order as he may think fit, provided that he is not entitled to receive any sum in excess of the indemnity allowed by this Act;

(b) Where the policy under which the assured claims is a valued policy, the assured must give credit as against valuation for any sum received by him under any other policy without regard to the actual value of the subject-matter insured; (c) Where the policy under which the assured claims

is an unvalued policy he must give credit, as against the full insurable value, for any sum received by him under any other policy;

(d) Where the assured receives any sum in excess of the indemnity allowed by this Act, he is deemed to hold such sum in trust for the insurers, according to their right of contribution among themselves.

An essential of double insurance is that the policies must have been effected in respect of the same interest. It cannot arise out of the insurance of different interests in the same subject-matter.

In certain circumstances double insurance may be effected wittingly, e.g., where the assured has some doubt as to the security afforded by the first underwriter (or set of underwriters). Banking houses frequently exercise some influence in this connection by declining to accept as approved policies of marine insurance those underwritten by certain insurers. Such action will not prejudice the right of the assured to present claims first on whichever insurer he pleases. This is a matter of some importance where the valuations fixed by the different insurances vary. In such circumstances it is always advisable to claim under the lower valuation first.

The practice apparent in other branches of insurance of incorporating in policies a contribution clause, by which the amount which assured can claim from any one underwriter is limited to his ultimate liability under the policy, is not observed in the marine field. Contribution between insurers still applies, but this is their concern purely. All that concerns the assured is that he is precluded from obtaining more than statutory indemnity in the event of loss, and that if he recovers any sum in excess of this, he is deemed to hold it in trust for the insurers, in accordance with their rights of mutual contribution.

Most frequently, double insurance arises inadvertently, e.g., by reason of a consignor insuring on behalf of consignee, the latter already being fully protected by floating policies. In such circumstances, it is usual for the assured to apply for an appropriate return of premium from each insurer, each bearing half the risk. As will be apparent when return of

premium is considered if either policy has at any time borne the entire risk, or if any claim has been paid on such policy in respect of the full sum insured thereby, no premium in respect of that policy is returnable.

Attention is drawn to the fact that the term "double insurance" is to some extent a misnomer, as any insurances which together protect the assured for a sum in excess of prescribed indemnity constitute double insurance, i.e., the word "double" applies to the policies and not to the sums insured.

CHAPTER V.

MARINE INSURANCE ACT, 1906 (continued).

WARRANTIES, ETC.

Nature of Warranty.

Section 33.-(1) A warranty, in the following sections relating to warranties, means a promissory warranty, that is to say, a warranty by which the assured undertakes that some particular thing shall or shall not be done, or that some condition shall be fulfilled, or whereby he affirms or negatives the existence of a particular state of facts.

(2) A warranty may be express or implied.

(3) A warranty, as above defined, is a condition which must be exactly complied with, whether it be material to the risk or not. If it be not so complied with, then, subject to any express provision in the policy, the insurer is discharged from liability as from the date of the breach of warranty, but without prejudice to any liability incurred by him before that date.

It is necessary first to draw a clear distinction between representations and warranties. Whereas a representation need be only substantially true, and misrepresentation to cause the contract to be voidable needs to be material to the risk, a warranty must be literally complied with, whether material to the risk or not. Warranties form a safety valve by which underwriters can ensure that an insurance is actually of the character which is attributed to it. Thus an underwriter may require that a representation made to him be embodied in the contract in the form of a warranty. A warranty may be either a condition precedent or a condition

subsequent. A condition precedent may have the effect of holding up the operation of the contract until a specified time or be an undertaking that a certain act shall be performed or left unperformed, or comprise an agreement whereby the existence of a particular state of facts is affirmed or negatived. A condition subsequent is such a one as will terminate the contract should a specified contingency operate.

As an example of the literal character which compliance with a warranty must take, may be evidenced the case of Quebec Marine Insurance Company v. Commercial Bank of Canada, 1870. In this case a vessel left port and after putting to sea it was discovered that her boilers were defective. The vessel returned to port in order to have this defective condition rectified, and on putting to sea again was lost. Although seaworthy at the time of the casualty causing the loss, she was held to have been unseaworthy when she originally started on her voyage. This was a breach of the implied warranty of seaworthiness, and underwriters were held not to be liable.

An express warranty must be written or incorporated by attachment or reference, in the body of the policy. In the case Pawson v. Barnevelt, 1779, Lord Mansfield held "" that a written paper did not become a strict warranty by being folded up in the policy."

It is not necessary to use the word " warranty" in order to give a condition the effect of such. Thus an insurance on the American Ship Mount Vernon was held to be a warranty as to the nationality of a vessel. (Baring v. Claggett, 1802.)

An important difference between a warranty as understood in connection with contracts of marine insurance and ordinary commercial contracts indicated in Sub-section 3. In other branches of commercial law breach of warranty does not enable the aggrieved party to throw up the contract in its entirety as from the moment of the breach as is the case in a contract of sea insurance, but merely enables him to claim unliquidated damages as a set-off. It may here be pointed out that the term "unliquidated damages implies damages of an amount to be determined by litigation or otherwise. "Liquidated